BRADYCARDIA PACING, TACHYARRHYTHMIA DEVICE SALES HIGHLIGHT STRONG QUARTER FOR MEDTRONIC; EARNINGS UP 23.1 PCT.
MINNEAPOLIS, Nov. 16 /PRNewswire/ -- Medtronic, Inc. (NYSE: MDT) today reported net earnings of $56.2 million, or $0.98 a share, for the quarter ended Oct. 29, 1993. After excluding the effect of non-recurring items in the prior year, net earnings increased 23.1 percent, enhanced by solid margins and continuing expense controls. Earnings per share showed a 27.3 percent increase over the same quarter a year ago after adjusting for non- recurring items which contributed 24 cents in that quarter. Revenue in the quarter just completed was $332.1 million, an increase of 11.2 percent over last year after adjusting for the effects of previously announced divestitures of certain businesses, reduced OEM sales, and the effects of foreign currency translation. For the first six months of the fiscal year, Medtronic reported net earnings of $108.7 million, an 18.9 percent increase over the $91.4 million earned last year. Earnings per share grew 22.7 percent, from $1.54 to $1.89. Revenues of $663.4 million represented an increase of 11.0 percent over comparable operations of the prior year. "Medtronic is pleased with its second-quarter results achieved in an uncertain worldwide health care atmosphere," said William W. George, president and chief executive officer. He credited sales gains in bradycardia pacing products, tachyarrhythmia devices, and interventional vascular catheters for leading the company's revenue performance and noted that profitability was "significantly enhanced by effective cost management." Bradycardia pacing revenues solidly surpassed the rate of market growth, led by increasing demand for dual chamber, rate responsive devices. The Medtronic Elite II(R) pacemaker, and Medtronic's broad line of CapSure(R) pacing leads, scored impressive gains. Acceptance of the Medtronic PCD(R), Model 7217B, by the worldwide medical community drove solid revenue performance for the Tachyarrhythmia Management business. The division recently announced that smaller, technologically advanced successor devices, Models 7219D and 7219C, have begun clinical evaluation. George noted that the company "is also looking forward to U.S. regulatory clearance of the Transvene(R) lead system which will bring the first FDA-approved transvenous, tiered therapy system to the U.S. market." Medtronic Interventional Vascular continued its strong growth in revenues and market share with its Spirit(TM), 14K(R) long balloon, and Gold Xchange(R) angioplasty catheter products which have significantly broadened the product line. U.S. sales of the SynchroMed(R) implantable drug infusion system highlighted the ongoing double-digit sales growth of the Medtronic Neurological business. Medical acceptance is growing for use of the device with Lioresal Intrathecal in the treatment of chronic spasticity of spinal cord origin. Cardiac Surgery sales were led by solid gains worldwide in bioprosthetic heart valves and the Medtronic Bio-pump(R). Medtronic, Inc., headquartered in Minneapolis, is the world's leading therapeutic medical device company. MEDTRONIC, INC. CONSOLIDATED STATEMENT OF EARNINGS (In thousands, except per share data) (Unaudited) Quarter Ended Six Months Ended 10/29/93 10/30/92 10/29/93 10/30/92 Net sales $332,057 $331,804 $663,363 $661,718 Costs and expenses: Cost of products sold 104,573 105,139 205,830 209,802 Research and development expense 36,649 32,690 73,978 63,517 Selling, general, and administrative expense 106,973 124,792 234,904 249,914 Interest expense 2,164 2,175 4,233 5,792 Interest income (2,185) (1,638) (3,861) (3,995) Gain on sale of subsidiary -- -- (13,962) -- Litigation settlement -- (50,000) -- (50,000) Intangible asset amortization -- 18,000 -- 18,000 Foundation commitment -- 12,000 -- 12,000 Total costs and expenses 248,174 243,158 501,122 505,030 Earnings before income taxes 83,883 88,646 162,241 156,688 Provision for income taxes 27,682 28,471 53,540 50,924 Net earnings before cumulative effect of accounting changes 56,201 60,175 108,701 105,764 Cumulative effect of accounting changes: Postretirement benefits, net of deferred taxes of $5,674 -- -- -- 9,256 Income taxes -- -- -- 5,100 Net earnings $56,201 $60,175 $108,701 $91,408 Weighted average shares outstanding 57,222 59,572 57,466 59,529 Earnings per share: Earnings before cumulative effect of accounting changes $.98 $1.01 $1.89 $1.78 Cumulative effect of accounting changes -- -- -- $(.24) Net earnings $.98 $1.01 $1.89 $1.54 -0- 11/16/93 /CONTACT: Dale Beumer, investor relations, 612-574-3038; or Dick Reid, public relations, 612-574-3052/ (MDT)
CO: Medtronic, Inc. ST: Minnesota IN: MTC SU: ERN
CP-DB -- MN012 -- 5228 11/16/93 16:18 EST
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|Date:||Nov 16, 1993|
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